MASSACHUSETTS Life Insurance Producer

an individual chose to receive money from their annuity during the accumulation period. What is the penalty tax that must be paid in addition to regular taxes due on the taxable amount received?

10%

an individual who violates a cease and desist order issued by the commissioner will be subject to a fine of

10,000

any person with access to the assets in an insurers separate account for variable products must be bonded for at least

100,000

a person who commits a deceptive act or practice may be fined not more than

1000

an individual who lets her producer license lapse may reinstate her license within how many months without having to take another licensing exam?

12 months

In MA, a producer must be at least

18 years old

when an existing life insurance policy is replaced, the replacement policy must have a free-look period of how many days?

20

For accelerated death benefits to receive the same tax treatment as regular death benefits the insured must be certified to have an illness or physical condition that can reasonably be expected to result in death within

24 months

If a party seeking to recover on an insurance policy has been damaged by an unfair or deceptive trade practice, the court may award additional punitive damages of uo to

25% of the claim

A Producers license renews every

3 years

a policy form may not be used in MA unless it has been approved by the commissioner or has been on file for at least

30 days

a producer must report to the commissioner any administrative action taken against them by any governmental agency within

30 days

an applicant whos application for a producers license has been denied and who desires a hearing with the commissioner must file a written demand for a hearing within

30 days

after a producers initial renewal period, how many CE credits must be earned prior to their next license renewal

45

the commissioner must inspect the financial records of each domestic company every

5 years

generally the maximum period that a life insurance policy may be backdated is

6 months

A temporary license may be issued for no longer than

90 days

an authorization to conduct an AIDs-related medical examination may remain valid for no more than

90 days

which type of annuity is most likely to provide death benefits if the insured dies during the accumulation period?

Deferred Annuity

as a general rule for federal tax purposes

Neither life insurance nor annuity premiums is tax deductible

Which of the following statements regarding an advisors license is correct?

No CE requirements are needed to maintain an advisors license

all of the following statements are correct regarding the MA CE requirement except

The requirements do not apply to persons licensed to sell variable contracts

if the commissioner finds that an individual is impersonating a producer, the violater may be assessed which of the policy penalties?

a $100 fine

an annuity that guarantees a minimum rate of return is

a fixed annuity

Larceny is an unfair trade practice in MA. all of the following situations describe this practice except

a producer is overdue in sending premiums to an insurer after collecting them from an insured.

Devon purchases an annuity that will pay a monthly income for the remainder of his life and then stop making payments. Devon has purchased

a straight life annuity

Tracey is paying money into an annuity she hopes will support her in her retirement years. Her contract currently is in which of the following periods?

accumulation period

a tax favored retirement savings plan that people can set up themselves through a bank, securities firm, or insurance company is known as

an IRA

which of the following would not qualify as a 1035 exchange?

an annuity contract to a life insurance policy

Michelle purchases an annuity that offers a guaranteed minimum interest rate and a guarantee against loss of principal if the contract is held to term. However, if the S&P 500 moves upward, Michelle's annuity might end up accruing more than the guaranteed minimum interest rate. Michelle has purchased

an equity-market indexed annuity

which of the following factors is not used to determine single premium immediate annuity premiums?

annuitants retirement date

all of the following statements about annuities benefits vs. life insurance benefits are correct except

annuities protect against dying too soon

The period during which a person receives the annuity benefits is called the

annuitization period

all of the following are factors in determining a life annuity payout amount except

beneficiary's age

annuities exist to

both accumulate a sum of money, and distribute a life income

accelerated benefits provided by a life insurance policy that may provide benefits to pay for long-term care services

could be taxable in some circumstances

for tax purposes which of the following are considered to be a return of a portion of the premium paid for the policy?

dividends

All of the following are requirements of an insurance advisor except

earning 60 continuing credits during the first 3 years following licensure

the amount of an annuity payout option or a life insurance settlement option that is taxable gain is determined by using the

exclusion ratio

the federal regulation that permits an applicant for insurance coverage to dispute any adverse information that surfaces on a credit report is known as the

fair credit reporting act

which of the types of annuities is guaranteed against loss and not tied directly to the stock market?

fixed

fixed annuities are supported by the insurer's

general account

all of the statements regarding tax treatment of group life insurance are true except

group life insurance premiums paid by the employer are not tax-deductible as a business expense

all of the following statements regarding taxation of annuities are correct except

if death occuts during the accumulation period, proceeds paid in a lump sum to the beneficiaries are never taxable.

under which annuity do the benefit payments begin within 12 months of the purchase?

immediate annuity

When a producer collects money from prospective insured, where should the money be placed?

in a premium trust account

under which of the following life annuity payout options do the payments stop when the first of two annuitants die and do not continue on to the survivor?

joint life

Albert has purchased an annuity that will pay him a monthly income for the rest of his life. If Albert dies before the annuity has paid back as much as he put into it, the insurance company has agreed to pay the difference to Albert's daughter. What annuity payout option did Albert select?

life with refund annuity

an insurance producer earning 55 CEU credits during his second license renewal period

may carry 10 credits over to their next renewal period

a fine of not more than 1000 and imprisonment for not more than 6 month identifies the penalties for

misrepresentation

Billy is receiving the proceeds of a life insurance policy as an income stream over a period of several years. What part of the money will be subject to tax?

only the part that represents income earned on the original death benefit

all of the following statements regarding tax treatment of individual life insurance policies are correct except

premiums are tax deductible

none of the following premiums are tax deductible for a business except

premiums paid for an executive bonus plan

pointing out to a perspective client that the life insurance policy you are presenting is covered by the MA Health Insurance and Guaranty Association is

prohibited by law

all of the following are powers and duties of the commissioner EXCEPT

prosecute brokers who violate state insurance laws

Offering a valuable consideration to an applicant or insured, which is not specified in an insurance policy best describes

rebating

an applicant for insurance who knowingly shares a producers commission in return for purchasing a policy is guilty of

rebating

which of the following is not a type of annuity product

retirement

what is the name of the test that is done on a life insurance policy to see if it premiums exceed those needed to fully pay up a death benefit with seven level annual payments?

seven-pay test

liz purchases an immediate annuity. the annuity contract must be a

single premium annuity

fixed period and fixed annuity are types of

temporary annuities

insureds of an insolvent insurer who sustain a loss in MA may have their claim paid by

the MA Life and Health insurance Guaranty Association

which of the following is NOT eligible to obtain temporary producers license?

the employees of a producer who is taking an extended leave of absence

the penalities assessed against MEC's primarily affect

the money taken out of the policy

an advisers license renews every

three years

A licensee must provide a notice about privacy policies and practicies

to individuals no later than when the licensee establishes a customer relationship

which of the following types of annuities are regulated as securities

variable

all of the following statements regarding an MEC are true except

withdrawals are used on a first in first out basis

when an insurer appoints a producer as its agent, the commissioner must be notified

within 15 days

a producer doing business under an assumed name must notify the commissioner

within 30 days

a producer who changes his address must notify the commissioner

within 30 days